First Drill Hole Returns Impressive (and Unexpected) Precious Metals

First Drill Hole Returns Impressive (and Unexpected) Precious Metals

These standout grades from Emerita Resources Corp.’s Romanera project could indicate the presence of a large mineralized zone at this Spanish mining project, noted a Research Capital Corp. report.

Emerita Resources Corp.’s (EMO:TSX.V; EMOTF:OTCMKTS; LLJ:FSE) first hole drilled at its Romanera project returned “impressive (and unexpected) precious metals,” reported Research Capital Corp. analyst Adam Schatzker in a June 23 research note.

In the longer term, if it turns out this initial hole is indicative of a large precious metals-rich zone there, that would positively impact the economics of a future Romanera mining operation, Schatzker noted.

This first Romanera drill hole completed by Emerita, LR-002, intersected 14.3 meters of massive sulfides and is remarkable for its high grades of silver and gold, Schatzker reported. Of all five metals encountered, silver had the highest grade, at 311.1 grams per ton (311 g/t). The gold grade was 7.61 g/t, and this, according to the analyst, was surprising and also noteworthy.

These silver and gold grades exceeded those of the high-grade portion (11,200,000 tons) of the 34,000,000 ton historical resource, 64 g/t, and 1 g/t, respectively.

Schatzker pointed out the 7.61 g/t gold grade is “quite high for this kind of deposit.” Because its host hole LR-002 was placed in the upper part of the area on which the historical resource is based, “this appears to present some significant and unexpected upside potential at Romanera.”

In terms of base metals, LR-002 returned 3% zinc, 2.9% lead, and 0.4% copper. These grades, Schatzker wrote, are more in line with those of the historical resource: 2.3% zinc, 1.1% lead, and 0.42% copper.

“We think that the results announced today should help Emerita outperform other base metal explorers in the near term (all else being equal),” wrote Schatzker.

Results of the three other holes comprising the maiden drill program at Romanera are pending. However, according to Emerita’s management, they appear to have encountered significant sulfide mineralization as well, Schatzker relayed.

Looking forward, with six rigs active at Romanera and assay turnaround times faster than previously, investors can expect a steady stream of results from this project in Spain over the coming months.

“It is likely that we will have a much better concept of Romanera’s potential within six months, assuming the pace of drilling and assay results are as expected,” added Schatzker.

Research Capital has a Speculative Buy rating and a CA$4 per share price target on Emerita, the stock of which is currently trading at around CA$1.27 per share.


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1) Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Emerita Resources Corp. Click here for important disclosures about sponsor fees. 

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

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Disclosures for Research Capital Corp., Emerita Resources Corp., June 23, 2022

Analyst Certification: I, Adam Schatzker, certify the views expressed in this report were formed by my review of relevant company data and industry investigation, and accurately reflect my opinion about the investment merits of the securities mentioned in the report. I also certify that my compensation is not related to specific recommendations or views expressed in this report. Research Capital Corporation publishes research and investment recommendations for the use of its clients. Information regarding our categories of recommendations, quarterly summaries of the percentage of our recommendations which fall into each category and our policies regarding the release of our research reports is available at www.researchcapital.com or may be requested by contacting the analyst. Each analyst of Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst’s personal views and (ii) no part of the research analyst’s compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.

Adam Schatzker has visited Emerita Resources Corp. in the past 18 months. 

General Disclosures:  The opinions, estimates and projections contained in all Research Reports published by Research Capital Corporation (“RCC”) are those of RCC as of the date of publication and are subject to change without notice. RCC makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; RCC makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained therein and accepts no liability whatsoever for any loss arising from any use of or reliance on its Research Reports or its contents. Information may be available to RCC that is not contained therein. Research Reports disseminated by RCC are not a solicitation to buy or sell. All securities not available in all jurisdictions.

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